Amazon American Will Start Collect Sales Tax January 1, 2018
Last week, Amazon posted a message at the seller's forum that it will begin collect sales tax on its third-party sellers in Washington State by 2018.
Amazon said the Tax Collection is a new service that automatically calculates, collects and remits sales taxes for third-party merchants that sell products to certain state customers. Washington will be the first to start implementing a law that came into effect on January 1, 2018, requiring all online trading platforms, such as Amazon, to charge sales tax on behalf of their third-party sellers.
Amazon tax game is big enough, Europe has not cleaned up it yet.
Taxes in Europe troubles a bunch of sellers without tax numbers, and the Inland Revenue Department was so crazy to see the proceeds. Amazon has opened up a new territories that by collecting sales taxes on products that is selled to consumers directly, while at the same time allowing sellers on the platform to handle their taxes. Washington state said they will gradually eliminate this loophole, all Internet sales will be taxed.
Suppose a Cleveland electronic retailer sells a television set to a buyer in Seattle and Amazon will process the related taxes and payments regardless of the sender or the distribution center.
This policy possible will be carried out in other states later
James Thomson, a former Amazon service department worker said: Other states are likely to follow.
"Amazon now agrees to collct and deduct sales tax from Washington State, and it is easier for the other states to charge sales tax on marketing." Amazon said other state sellers except Washington State are still responsible for their tax obligations so far.
With Amazon's rapid growth, U.S. e-commerce sales are expected to reach 500 billion U.S. dollars by 2018, according to Forrester. The State Tax Commission estimates that Inland Revenue Department can receive more than $ 2 billion in sales tax each year only from sellers using Amazon warehouses.
South Carolina, which went to the court to take a copy of Amazon's claim that Amazon had not collected a sales tax of about $ 57 million in 2016, while South Carolina would charge an extra $ 500 million in revenue over the next five years.
New sales tax amnesty plan
Earlier this year, several states gathered to discuss a new sales tax amnesty plan for sellers in Amazon and other online retailers. In return for the sales tax levied on the future, members will be exempt from partial tax obligations.
The sellers currently enrolled in this program is 850, according to media reports.
In the case of taxation before in Europe, it would be very hard to move forward without legal sanctions to enforce the sales tax implement, and it requirs considerable manpower and time to monitor and enforce. The United Kingdom, who had been yelling for taxation. No compulsory measures were taken for a long period of time until this year began its implementation, resulting in serious investigation now and mant accounts were blocked.
Whether the United States will follow the example of the United Kingdom is hard to say.